eBay 2004 Annual Report Download - page 16

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For an analysis of Ñnancial information about geographic areas as well as our segments, see ""Note 4 Ì
Segments'' of the notes to our consolidated Ñnancial statements incorporated herein.
Available Information
Our Internet address is www.ebay.com. Our investor relations website is located at
http://investor.ebay.com. We make available free of charge on our investor relations website under ""SEC
Filings'' our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K
and amendments to those reports as soon as reasonably practicable after we electronically Ñle or furnish such
materials to the U.S. Securities and Exchange Commission. Further, a copy of this annual report on
Form 10-K is located at the SEC's Public Reference Room at 450 Fifth Street, NW, Washington, D.C.
20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 1-
800-SEC-0330. The SEC maintains an internet site that contains reports, proxy and information statements
and other information regarding our Ñlings at www.sec.gov.
ITEM 2: PROPERTIES
We own and lease various properties in the United States and in 17 other countries around the world. We
use the properties for corporate, administrative, customer support and other general business needs. Our
corporate headquarters are located in San Jose, California. As of December 31, 2004, our owned and leased
properties provided us with aggregate square footage of approximately 730,000 and 1.4 million, respectively,
and the total square footage occupied by our U.S. Marketplace, International Marketplace and Payments
segments totaled approximately 800,000, 650,000 and 450,000, respectively. As of December 31, 2004, the
remaining total square footage of our owned and leased properties were either sublet or were being marketed
for sublet.
From time to time we consider various alternatives related to our long-term facilities needs. While we
believe our existing facilities are adequate to meet our immediate needs, it may become necessary to lease or
acquire additional or alternative space to accommodate any future growth.
For a discussion of the accounting treatment of our leased corporate headquarters that we will purchase
on March 1, 2005, see ""Note 8 Ì Long-Term Obligations'' of the notes to our consolidated Ñnancial
statements, included elsewhere in this Annual Report on Form 10-K.
ITEM 3: LEGAL PROCEEDINGS
In April 2001, two of our European subsidiaries, eBay GmbH and eBay International AG, were sued by
Montres Rolex S.A. and certain of its aÇliates in the regional court of Cologne, Germany. The suit
subsequently was transferred to the regional court in Dusseldorf, Germany. Rolex alleged that our subsidiaries
were infringing Rolex's trademarks as a result of users selling counterfeit Rolex watches through our German
website. The suit also alleged unfair competition. Rolex sought an order enjoining the sale of Rolex-branded
watches on the website as well as damages. In December 2002, a trial was held in the matter and the court
ruled in favor of eBay on all causes of action. Rolex appealed the ruling to the Higher Regional Court of
Dusseldorf, and the appeal was heard in October 2003. In February 2004, the court rejected Rolex's appeal
and ruled in our favor. Rolex has appealed the ruling to the German Federal Supreme Court. In March 2004,
the German Federal Supreme Court ruled in favor of Rolex in a case involving an unrelated company,
ricardo.de AG, but somewhat comparable legal theories. The court issued its written decision in that case in
September 2004. Although it is not yet clear what eÅect the reasoning of the German Federal Supreme
Court's ricardo.de decision would have when applied to eBay, we believe the Court's decision will likely not
require any signiÑcant change in our business practices.
In September 2001, a complaint was Ñled by MercExchange LLC against us, our Half.com subsidiary
and ReturnBuy, Inc. in the U.S. District Court for the Eastern District of Virginia (No. 2:01-CV-736)
alleging infringement of three patents (relating to online auction technology, multiple database searching and
electronic consignment systems) and seeking a permanent injunction and damages (including treble damages
for willful infringement). In October 2002, the court granted in part our summary judgment motion, effectively
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